15/1 Stock and Asset Management MCQ

What is stock in the context of engineering and manufacturing?

• Only raw materials stored in a factory

• Materials and components used in production

• Finished products ready for sale

• Tools and equipment used in manufacturing

Which of the following is not typically considered stock in a manufacturing company?

• Sheet steel

• Paint

• Assembly line machines

• Window glass

Why do companies need to manage stock levels?

• To prevent overproduction

• To ensure raw materials are available when needed

• To reduce waste and storage costs

• All of the above

What is one of the key considerations for holding stock?

• Where and how it is stored

• Who buys it from the factory

• How quickly it depreciates

• The legal ownership of stock

Which type of stock refers to unfinished goods still in the production process?

• Raw materials

• Work in progress

• Finished goods

• Consumables

Why do some stock items, like paint and adhesives, require specific storage conditions?

• To maintain product quality and avoid damage

• To make them easier to transport

• To reduce theft risks

• To increase production speed

Which of the following best describes a stock cycle?

• The process of selling stock to customers

• The flow of stock through raw materials, work in progress, and finished goods

• A method of tracking employee productivity

• The movement of machines on a production line

Which of the following best describes "consumables" in stock management?

• Items that are used once and need to be replenished

• Machinery that lasts for years

• Raw materials that never expire

• Completed products waiting for distribution

What should a company do with surplus stock?

• Store it indefinitely

• Sell it at a discounted price, recycle, or repurpose it

• Dispose of it immediately

• Keep producing more to balance the inventory